Mexco Energy (MXC) Stock: Here’s What’s Going On

MEXCO Energy MXC Stock News

Mexco Energy Corporation (NYSEAMERICAN: MXC) is flying in the market this morning, gaining nearly 200% before the bell. With no press releases issued, there are several messages on social media asking what the catalyst is. Well, this is a short squeeze my friends, triggered by a coming meeting. Here’s what’s going on:

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MXC Is In The Middle Of A Short Squeeze

While Mexco Energy didn’t release any press releases, it did file documents with the SEC yesterday. The documents announced a coming Annual Meeting of Stockholders.

The meeting will be held at the company’s principal office at 2:00 p.m. on September 10, 2020. During the meeting, the following items will be discussed:

  • Electing Directors of the Company.
  • Ratifying the selection of Weaver and Tidwell, L.L.P. as the Company’s independent registered public accounting firm for the fiscal year ending March 31, 2021.
  • Voting upon a non-binding advisory resolution regarding the compensation of our named executive officers as disclosed in this Proxy Statement.
  • Considering all other matters as may properly come before the meeting.

So, What’s The Big Deal?

There really isn’t one. The company is electing directors, which is somewhat exciting, but not 200% gains exciting. So, what’s going on? It’s a short squeeze.

Before the SEC filing, MXC was a highly shorted stock. With the announcement, a little bit of excitement ensued, leading to slight gains. This led to some shorts abandoning their positions, leading to further gains. The process continued until shorts began to race to cover, leading to a short squeeze in Mexco Energy stock.

Keep in mind that while there may be plenty of room ahead, short squeezes are short term moves. There’s a strong likelihood that at some point soon, the stock will tank as traders take profits. So, be prepared for the move.

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